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Transfer of Stock Ownership

Shares in a company are often transferred by private agreement between the seller and the buyer.  Documentation required to initiate transfer of stock differs depending on the reason for transferring stock.  Even though specific requirements for transferring shares may differ, there are some general guidelines required by most guarantors.  Federal and state securities laws govern the distribution and exchange of stock in a corporation. Conversion rights enable a shareholder to convert the preferred stock for the common stock.  Shareholders may also possess redemption rights, which permit the shareholders to redeem their stock to the corporation for a value specified in the articles of incorporation or set by the board.

Inside Transfer of Stock Ownership